Investing in Connecticut s Economic Future. Tim Sullivan, Deputy Commissioner Connecticut Department of Economic and Community Development

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1 Investing in Connecticut s Economic Future Tim Sullivan, Deputy Commissioner Connecticut Department of Economic and Community Development October 13, 2016

2 State of the State Unemployment is at a nearly eight-year low, while wages are at the highest point ever Since August 2015, the state has added 18,600 private sector jobs Personal income has grown in every quarter in 2014 through Q State continues to streamline regulations and use LEAN tools to improve productivity

3 Diverse Industry Sectors Insurance/ Financial Services Green Technology Bioscience Digital Media Advanced Manufacturing Tourism

4 Strategic Talent Development Northeast U.S. Location Strategy Goal Increase STEM Education Selected Outcomes Massachusetts Next Generation CT targeted $137M investment in STEM disciplines at UConn Wide variety of STEM education programs Young Manufacturers Academy, 142 students in 2016 Add Manufacturing Talent 2011 Jobs Bills authorized up to $20M to expand existing and develop new manufacturing programs in community colleges Manufacturing Innovation Fund programs aimed at developing future pipeline of talent serves 300 companies

5 Strategic Talent Development Northeast U.S. Location Strategy Goal Selected Outcomes Massachusetts CI s Technology Talent Bridge, Entrepreneurs-in- Residence program, accelerators and co-working spaces have served 500+ entrepreneurs Entrepreneurial Support CTNext entrepreneur support system provides access to talent, space, expertise, services, and capital. Recent projects: A 100 Coder Training Academy working in New Haven, Stamford STEM Skills Challenge tests student developers, connects the best with top tech firms italent Initiative connects universities and tech companies

6 Strategic InnovationNortheast U.S. Location Strategy Goal More R&D Capacity at UConn Selected Outcomes Massachusetts CT has moved from 32 nd to 12 th in academic R&D spending Increased # of engineers/engineering faculty at UConn; # of grads up 70% $1.5B construction investment in Next Generation CT at UConn to build new classrooms/labs and buy new equipment Expand CI s Investment Capacity Connecticut Innovations investments have grown from $9.4M to $20.2M in last 4 fiscal years (115% growth) Connecticut Bioscience Innovation Fund provides funds to early stage companies, and nonprofits building commercialization infrastructure ($200 million fund)

7 Strategic Quality of Northeast Life U.S. Location Strategy Goal Improve Transit Oriented Development Selected Outcomes Massachusetts Workforce housing has increased by thousands of units, with a focus on key urban, TOD areas. Being absorbed rapidly Have supported cities and towns along MetroNorth and new light rail from New Haven-Springfield to develop retail, housing and other TOD Comprehensive Energy Policy Comprehensive Energy Strategy (strategy for all residential, commercial, and industrial energy issues) CT Green Bank provides low-cost financing to support renewable energy and efficiency, including C-PACE and Energy on the Line

8 Strategic DECD Toolbox Northeast U.S. Location Financing Loans Forgivable Loans Grants Tax Incentives Credits Abatements Technical Assistance Expertise Research Work with partners

9 Strategic Investing in Northeast Connecticut s U.S. Manufacturing Location Anchors

10 Strategic Manufacturing Northeast Innovation U.S. Fund Location Originally capitalized with $30M in bond funding, was expanded in 2015 with an additional $20M in FY16 and $20M in FY17 As of August 2016, more than $37M has been obligated to its programs/initiatives Manufacturing Voucher Program Helps CT manufacturers undertake innovative projects to improve productivity, efficiency and competitiveness (e.g., new equipment, training and software) Incumbent Worker Training Program Financial assistance to help manufacturers keep their workforce s skills up to date Apprenticeship Initiative Provides incentives to increase the number of apprentices in manufacturing (financial assistance in the form of wage subsidies, competency testing and tuition reimbursement) Other Programs: Energy on the Line Young Manufacturers Academy Dream It. Do It.

11 Strategic Supporting Northeast Connecticut s U.S. Tourism Location Industry Tourism is a major growth industry in Connecticut $14 billion in annual economic impact 82,500 direct jobs 7,000+ new direct jobs since the end of the recession 120,000 total (direct and indirect) jobs are supported by the tourism sector Recent relaunch of Now ~4 million annual site visits

12 Strategic Brownfields: Northeast Creating U.S. Livable, Location Vibrant Communities Since FY12, CT has invested $173M in 100+ projects to remediate and redevelop brownfields across the state For every $1 invested by the state, $4.99 has been or will be invested by non-state partners FY16 projects: $8.37 of non-state investment for every $1 invested by the state $36M of new funding was authorized for FY16-17, up from $30M in previous biennium Brownfield Areawide Revitalization (BAR) grants: new comprehensive cluster-based planning program $1M total awarded to 6 communities Two Roads Brewing Co. Two Roads invested almost $2.85M to purchase 101 year-old building in Stratford and another $18M to transform itself into a microbrewery Received $500,000 grant from DECD for site remediation and $100,000 EXP grant

13 Strategic Small Business Northeast Express U.S. Program Location (EXP) Matching grants of up to $100,000 or loans/forgivable loans in amounts up to $300,000 To date, 1,601 companies have been provided more than $251 million in financial assistance Companies will create 6,362 jobs and retain 17,822 All industries are represented including manufacturing, healthcare and bioscience, business and financial services, construction, and main street retail Hampford Research Inc. EXP is helping the specialty chemical manufacturer expand in Stratford A $180,000 loan and $100,000 matching grant Project retained 31 jobs and will create 2

14 Strategic New Initiative: Northeast Connecticut U.S. Port Location Authority Connecticut's ports will be in a stronger position to attract more private investment and import and export business. Governor Dannel P. Malloy Quasi-public state governmental body whose primary responsibilities include: Marketing Connecticut s ports Pursuing federal and state funds for dredging Coordinating, planning and implementing capital projects Key milestones: Appointment and convening of the 15-member Board of Directors MOU with DECD for support services Transfer of State Pier and other DOT responsibilities Search and appointment of Executive Director Creation of a statewide strategic plan for increasing economic activity and strengthening our maritime policies

15 Strategic New Initiative: Northeast Technology U.S. Talent Location Fund 2016 legislation establishing a Technology Talent Advisory Committee within DECD, with the ultimate goals of: Identifying greatest gaps in Connecticut s tech talent Developing and/or implementing programs that help fill those gaps Advisory Committee Currently composed of 11 members, including representatives from UConn, the Board of Regents for Higher Education, and private industries First meeting will be held October 4 Potential programs might include: Partnerships with public and private colleges and universities to build business-oriented IT curricula to support technology and tech skills Develop training programs for high school students to introduce computer programming, web design, animation, etc. Develop summer and after-school coding boot camps to teach coding to elementary and middle school students

16 Strategic New Initiative: Northeast Innovation U.S. Places Location Public Act 16-3 established CTNext as a subsidiary of CI 11-member Board of Directors Key initiative: Innovation Places Higher education initiatives, existing program expansion Innovation Places Vision: Entrepreneurship and innovation stakeholders throughout each community collaborate to develop and implement strategy such that Connecticut develops top-tier destinations for entrepreneurs and technology talent Value Proposition: Incentive funding for collaborative visioning & planning (initial applications being reviewed now) Direct funding for implementation projects Indirect funding through other state economic development entities for compelling plans and collaborative communities

17 Strategic Opening Soon: Northeast DistriCT U.S. NHVLocation Former CT DOT Bus Garage (470 James Street in New Haven) being converted into a Google-style tech campus (100K SF, opening early 2017, leasing now)

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